Agency Agreement for Property Sales: What to Include
Updated 3 November 2026 · Land & Property editorial team
A property agency agreement is a written contract between a seller and an agent. It should name the property and owner, say what the agent may do (the mandate), state the commission and when it is earned, say whether the agent is exclusive, set a duration and end date, deal with money held for the client, and explain how either side can end it. Uganda's Contracts Act allows oral contracts but requires writing above 25 currency points.
- Can a contract be oral?
- Yes, Contracts Act, 2010, section 10(2); but see the writing rule below
- Writing required
- A contract whose subject matter exceeds 25 currency points must be in writing (section 10(5))
- Statutory agency regime
- None found; Real Estate Bill proposed (as of Nov 2026)
- Status of this page
- Recommended practice, not legal advice
Do I need a written agreement with an agent?
You should have one. Uganda's Contracts Act, 2010 says that a contract may be oral, written, partly both, or implied from conduct (section 10(2)). So an oral deal can bind you. But the same section says a contract whose subject matter exceeds twenty-five currency points shall be in writing (section 10(5)) (Contracts Act, 2010, on ULII). The Schedule to the Act, in its 2010 text, sets one currency point at UGX 20,000, so 25 points is UGX 500,000. The Minister may amend the Schedule by statutory instrument, so confirm the current value with an advocate. Commission on most land and house sales is likely to be above that threshold, which makes writing the safe course. This is general information, as of November 2026, not legal advice.
There is a second reason. There is no statutory agent licence in Uganda today and no standard agency form set by law. The Real Estate Bill that would regulate agents is still a proposal; the Lands Minister said in September 2026 that government is fast-tracking it (Daily Monitor, 11 September 2026). Our research did not find the Bill's text, so we treat a written agency agreement as recommended practice, not as a legal duty we can cite. See whether a licence is required for the current position.
What should a property agency agreement include?
Use this table as a checklist when you or your advocate prepare the document. The right-hand column explains the problem each clause prevents.
| Clause | What it should say | Problem it prevents |
|---|---|---|
| Parties | Full names, National ID numbers, addresses of owner and agent; company name and registration if a firm | Not knowing who you contracted with |
| Property | Title details (plot, block, volume and folio, or address), tenure, size, and any known caveat or occupant | Selling the wrong land or hidden problems |
| Mandate | What the agent may do: advertise, show, negotiate, receive offers; and what they may not do, such as signing a sale or accepting purchase money | Agent acting beyond authority |
| Price | Minimum price or price range the owner will accept, and who approves changes | Disputes over a discounted sale |
| Commission | Percentage or fixed sum, who pays, and when it is earned | Arguments after the sale |
| Exclusivity | Sole or open agency; whether the owner may sell directly | Two agents claiming the same buyer |
| Duration | Start date, end date, renewal by written consent only | An agreement that never ends |
| Client money | How deposits are held and by whom | Money lost in an agent's personal account |
| Termination | Notice period, reasons, what happens to a buyer already introduced | Walk-away disputes |
| Disputes | Mediation first, then court | Costly fights |
How should commission be written?
No law we found sets a standard property commission rate in Uganda, and we do not invent one. Rates are negotiated. Our guide on how much agents charge to sell property explains what is reported and how to compare. In the agreement, remove every ambiguity:
- Rate and base: a percentage of the sale price actually received, or a fixed sum. Say whether it is before or after tax, and who bears any tax on the commission.
- When it is earned: on signing the sale agreement, on receipt of the deposit, or on completion. Completion protects a seller from paying for a sale that collapses.
- Who pays: seller only, or buyer too. If the agent will charge both sides, say so openly.
- Part payment: if commission is paid in stages as the buyer pays by instalments, write the schedule.
- Shared deals: if another agent brings the buyer, say who splits what. See co-broking and commission splits.
Tax on commission can apply. We do not state a rate here because we could not verify the current withholding position for real estate agents. Ask your tax adviser or check the Uganda Revenue Authority.
Sole agency or open agency: what is exclusivity?
Exclusivity means who is allowed to sell. In a sole agency only the named agent may market the property for the agreed period, and the agreement should say whether the owner can still sell directly without paying commission. In an open agency the owner may appoint several agents and usually pays only the one who produces the buyer.
The choice is practical. A sole agent has a reason to spend on photos, a video and advertising because the commission is protected. An owner who appoints many agents may find the same plot advertised at different prices by different people, which makes buyers suspect a scam. If you pick sole agency, set a short initial period, for example three months, and a clear review date, so that the owner is not locked in to an agent who does nothing. On Land & Property, our Listing Rules explain how we treat duplicate listings of the same property.
How should client money be handled?
An agent should not hold a buyer's purchase money unless the agreement allows it, and for land the safer route is a lawyer's client account or a payment straight to the registered seller against a signed sale agreement. Write it down: who may receive a deposit, into what account, against what receipt, and when it must be passed on.
Reports from Ugandan property sources describe deposits taken by mobile money to personal numbers before viewings, and, in commenters' accusations, the same listing resold to several people (Nymynet). A clause that bans payment to a personal number protects both the seller's name and the agent's reputation. The Real Estate Bill has been reported to target fraud and false representation, though its text on trust accounts has not been verified by us, so we do not claim it. Treat the clause as good practice now.
How can the agreement end?
Say how each side can end the relationship, and what survives. A good termination clause covers:
- Expiry: the agreement ends on the stated date unless both sides renew in writing.
- Notice: either party may end it earlier by written notice, for example 14 days, if the other side breaches it.
- Buyers already introduced: list the buyers the agent introduced in writing (name, date, property). If one of them buys within a stated period after the agreement ends, commission is still due. This "protection period" is where most disputes start, so keep it short and specific. See Commission Disputes.
- Conduct: if the agent misrepresents the property or takes money without authority, the owner may end it at once.
- Dispute route: mediation first, then the courts. Your advocate can draft the wording.
Agencies with several agents should also read real estate company registration verification, so the person who signs has authority for the firm.
What about rentals and other agreements?
This page is about sales mandates. A letting agent works under a different arrangement, and the landlord and tenant also need a written tenancy agreement. Keep the two separate, so a tenant is not confused about who is the landlord and who is only the agent. If you are an agent ready to show your documents, you can apply to become a verified agent and keep your signed mandates ready for any buyer who asks to see them.
Frequently asked questions
Do I need a written agreement with an agent?
You should. The Contracts Act, 2010 allows oral contracts, but section 10(5) says a contract above 25 currency points must be in writing. Most property commissions are likely to exceed that, and writing protects both sides. Ask an advocate to check the wording. This is general information as of November 2026.
What should it say?
Name the parties and the property, set out the mandate, price, commission and when it is earned, say whether the agent is exclusive, give start and end dates, explain how client money is held, and describe termination and dispute steps. The table on this page lists each clause with the problem it prevents.
Is there a standard commission set by law in Uganda?
We found no statutory property commission rate in Uganda. Rates are negotiated between seller and agent. Put the rate, the base it applies to and the date it is earned in writing so there is nothing to argue about later.
Can an agent accept the purchase money for me?
Only if the agreement clearly says so, and it is safer not to allow it. Use a lawyer's client account or pay the registered seller against a signed agreement, and ask for a receipt. Never pay to a personal mobile number without written approval from the owner.
Sources
- Contracts Act, 2010 (Act 7 of 2010), section 10, ULII (Uganda Legal Information Institute) (accessed 2026-11)
- Govt targets fraud, unqualified agents in Real Estate Bill, Daily Monitor (accessed 2026-11)
- Buying and Selling Property in Uganda: Scams on TikTok and WhatsApp, Nymynet (accessed 2026-11)